German Business Confidence Rose For Third Month

The German IFI business climate reading in June rose for a third month to 85.9 from 84.3 signaling that the economy may haven bottomed. Economist forecasted an improvement to 85.0, but a jump in expectations to 89.5 from 85.9 help offset a slight decline in the current assessment to 82.4 from 82.5. Aggressive easing from the ECB and other non-standard efforts including a 60 billion euro covered bond purchase program in conjunction with stimulus packages from countries like Germany have helped boost optimism. However, the region’s economy still faces many challenges before it will see growth return which is evident by the declining current situation. The Euro saw some initial bearish sentiment following the release on those concerns.